Brendan Howlin (Wexford, Labour)
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Question 87: To ask the Minister for Agriculture and Food her views on whether the disadvantaged areas scheme might be improved; and if she will make a statement on the matter. [24623/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The position is that under the current Disadvantaged Areas Compensatory Allowance Scheme over 100,000 farmers qualify for payments totalling some €233million annually.

The current payment levels are as follows: More Severely Handicapped (lowland) €88.88 per hectare up to 45 hectares. Less Severely Handicapped (lowland) €76.18 per hectare up to 45 hectares. Mountain type land €101.58 per hectare on first 10 hectares or part thereof and €88.88 per hectare on remaining hectares subject to an overall payment ceiling of 45 hectares.

For 2006, as a once-off measure, I have decided that modulated funds of approximately €18m will be spent in the disadvantaged areas and this will have the effect of increasing the payment levels per hectare in 2006 — from €88.88 to €95.02, from €76.18 to €81.44 and from €101.58 to €108.00.

The Council of Agriculture Ministers agreed on 20 June 2005 a new framework for rural development for the period 2007 to 2013 which provided for the maintenance of the existing arrangements for the Less Favoured Areas until 2010. Before then, the Commission will present a report and proposals to the Council concerning the future payment system and designation of these areas. My Department is currently engaged in drawing up Ireland's Rural Development Programme for the period 2007-2013. Funding levels for the Scheme under this Programme are the subject of discussion in the farming pillar of the current Partnership talks.

The cost of the old coupled Disadvantaged Areas Compensatory Allowance schemes in year 2000 was €155m in respect of which 92,000 farmers qualified for payment i.e. an average payment of €1,684 compared with the current average of €2,316 — an increase of 37.5%. The number of beneficiaries has also increased by 9.3%, from 92,000 in 2000 to 100,600 in 2005. On the changeover to the area based scheme an additional €76m (£60m) was added from the Exchequer.